The state condemned Cassidy's land on November 25,2016.The land has a $400,000 basis.Cassidy received insurance proceeds of $610,000 on January 27,2017.Cassidy has until what date to defer the gain under the involuntary conversion rules?

Question

Quizplus · Accepted Answer

Under the involuntary conversion rules, Cassidy has three years from the end of the tax year in which the gain is realized to reinvest the proceeds and defer the gain. Since the proceeds were received in 2017, the deadline is December 31, 2020.

The State Condemned Cassidy's Land on November 25,2016